It’s time for your Daily Hit of cannabis financial news for March 13, 2019.
On The Site
Acreage Holdings, Inc. (CSE: ACRG.U) (OTCQX: ACRGF) delivered fourth-quarter revenue of $10.5 million for an increase of 380% over the previous year’s $2.1 million. Acreage reported a whopping fourth-quarter net loss of $217.6 million. The pro forma revenue* for the fourth quarter was $22.9 million and the pro forma adjusted net loss*, which excludes certain non-cash charges and non-recurring items, for the fourth quarter was $10.8 million.
The full year fiscal 2018 revenue of $21.1 million increased 173% over last year’s $7.7 million. The pro forma revenue* was $77.2 million for the full year fiscal 2018. The full year fiscal 2018 net loss of $219.7 million was primarily driven by non-cash charges and non-recurring items. The pro forma adjusted net loss*, which excludes certain non-cash charges and non-recurring items was $30.3 million for the full year fiscal 2018.
Innovative Industrial Properties, Inc. (NYSE: IIPR) announced results for the fourth quarter and year ended December 31, 2018. IIPR generated rental revenues of approximately $4.7 million in the quarter, representing a 111% increase from the prior year’s quarter and in line with the Yahoo! Finance analyst estimate.
IIPR recorded net income attributable to common stockholders of approximately $2.3 million for the quarter, or $0.24 per diluted share, and adjusted funds from operations (AFFO) of approximately $3.6 million, or $0.38 per diluted share. AFFO represented an increase of 344% from the prior year’s quarter.
HEXO Corp. (TSX: HEXO) (NYSE: HEXO) is acquiring Newstrike Brands Ltd. (TSX-V: HIP) in an all-stock deal valued at approximately $263 million. Newstrike shareholders will receive 0.06332 of a HEXO common share in exchange for each Newstrike common share held. There is a $7.5 million termination fee.
Newstrike is the parent company of Up Cannabis Inc., a licensed producer of cannabis that is licensed to both cultivate and sell cannabis in all acceptable forms. Newstrike, through Up Cannabis and together with select strategic partners, including Canada’s iconic musicians The Tragically Hip, is developing a diverse network of high-quality cannabis brands
In Other News
Village Farms International, Inc. (TSX: VFF) (NASDAQ: VFF) announced its financial results for the fourth quarter and year ended December 31, 2018.Net income improved to positive US$0.3 million, or US$0.01 per share, and included the contribution of positive net income from Pure Sunfarms Corp. of US$2.8 million. This compares with a net loss of (US$0.6 million), or (US$0.02) per share. Sales, including the Company’s proportionate share of Pure Sunfarms’ sales, increased to US$40.6 million compared with US$36.9 million. EBITDA, was US$1.5 million compared with US$2.6 million. EBITDA included $0.9 million from Pure Sunfarms. Completed a bought deal offering of 3,097,200 common shares at a price of $7.13 per share (for aggregate gross proceeds to the Company of $22,083,036. The company’s common shares commenced trading on the Nasdaq Capital Market under the symbol “VFF” after being halted because the company thought it was DTC eligible and it wasn’t.
Lawmakers and regulators have signed off on new regulations explicitly permitting adults to consume cannabis at specially licensed retailers. “When these rules go into effect, Alaska will be the first state to finalize and approve statewide rules for on-site consumption. We expect more to follow suit in the not too distant future,” stated NORML Executive Director Erik Altieri, “Allowing social consumption is sensible from a business perspective, particularly for states with large amounts of tourists who otherwise have no place to legally consume, but it also has an important social justice component.”
Namaste Technologies Inc. (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF) today announced that it has completed the previously announced acquisition of 49% of the common shares of Toronto-based Pineapple Express Delivery Inc.